Franklin Templeton & Binance De-Risk Crypto for Institutions

SAN MATEO, CA – February 11, 2026 – Global investment giant Franklin Templeton and leading cryptocurrency exchange Binance have launched a pioneering collaboration set to reshape institutional participation in digital asset markets. The new institutional off-exchange collateral program allows eligible clients to use tokenized money market fund shares as collateral for trading on Binance, a move that directly addresses long-standing institutional concerns about counterparty risk and capital efficiency.

This initiative allows institutions to keep their primary assets in a regulated, off-exchange custody environment while their value is mirrored on the exchange for trading purposes. By bridging the worlds of traditional, regulated finance (TradFi) and the burgeoning digital asset space, this partnership marks a significant step toward making crypto markets more secure, accessible, and attractive for large-scale financial players.

A New Paradigm for Institutional Trading

The core of the program revolves around Franklin Templeton's Benji Technology Platform, which issues tokenized shares of its money market funds. Instead of transferring assets directly onto the Binance exchange—a process that exposes firms to potential counterparty risk—institutions can now pledge these tokenized, yield-bearing fund shares as collateral. The value is recognized by Binance's trading environment, unlocking liquidity without forcing an asset transfer.

This structure solves a major pain point for institutional traders who have historically been forced to choose between earning yield on their capital or parking it idly on an exchange to support their trading activities. This new model eliminates that trade-off, enhancing capital efficiency by allowing assets to remain productive while simultaneously backing trading positions.

“Since partnering in 2025, our work with Binance has focused on making digital finance actually work for institutions,” said Roger Bayston, Head of Digital Assets at Franklin Templeton. “Our off-exchange collateral program is just that: letting clients easily put their assets to work in regulated custody while safely earning yield in new ways. That’s the future Benji was designed for, and working with partners like Binance allows us to deliver it at scale.”

For Binance, the world's largest crypto exchange with over 300 million users, the collaboration is a key part of its strategy to attract deeper institutional involvement. “Partnering with Franklin Templeton to offer tokenized real-world assets for off-exchange collateral settlement is a natural next step in our mission to bring digital assets and traditional finance closer together,” commented Catherine Chen, Head of VIP & Institutional at Binance. “Innovating ways to use traditional financial instruments on-chain opens up new opportunities for investors and shows just how blockchain technology can make markets more efficient.”

The Bedrock of Security and Regulation

A cornerstone of the program's appeal to risk-averse institutions is its robust security and regulatory framework. The custody and settlement infrastructure is supported by Ceffu, Binance’s institutional crypto-native custody partner. Critically, Ceffu Custody FZE is a virtual asset custodian licensed and supervised by the Dubai Virtual Asset Regulatory Authority (VARA), providing a layer of regulatory oversight that institutions demand.

Assets participating in the program never leave this regulated custody environment. Ceffu utilizes advanced security protocols, including multi-party computation (MPC) technology and certifications such as SOC2 Type 2, to safeguard assets. Its off-exchange settlement solution, MirrorX, enables the seamless reflection of asset value on Binance without the underlying assets ever moving to the exchange's balance sheet.

“Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency,” noted Ian Loh, CEO of Ceffu. “This program demonstrates how off-exchange collateral can support institutional participation in digital markets while maintaining strong custody and control.”

This structure directly mitigates the counterparty risk that has been a persistent shadow over the crypto industry, providing institutions with a trading model that aligns with their internal governance and compliance mandates.

Unlocking Yield in a 24/7 Market

The financial benefits for participating institutions are tangible. By using tokenized money market funds, which currently offer competitive yields, firms can avoid the problem of “trapped capital.” Instead of holding non-interest-bearing stablecoins or fiat on an exchange, their collateral remains invested and continues to generate returns. This dual-purpose use of capital is a powerful incentive for treasurers and portfolio managers.

Furthermore, the use of tokenized assets built on blockchain technology enables near-instant, 24/7 settlement. This stands in stark contrast to traditional financial markets, which are constrained by banking hours and multi-day settlement cycles. The ability to move and settle collateral around the clock provides unprecedented flexibility, allowing firms to manage liquidity and respond to market events with greater agility.

This 24/7 availability enhances capital mobility and allows for more efficient risk management, meeting a growing institutional demand for stable, high-quality collateral that can operate at the speed of digital markets.

A Strategic Blueprint for Financial Convergence

This collaboration is more than just a new product launch; it is a significant milestone in the broader trend of tokenizing Real-World Assets (RWAs) and the convergence of TradFi and decentralized finance (DeFi). Franklin Templeton, an asset manager with over $1.7 trillion under management, has been a vocal proponent and early adopter of digital asset technology since 2018. Their development of the Benji platform and this partnership with Binance solidifies their position as a legacy finance leader actively shaping the future of the industry.

The move also comes as competition in the tokenized asset space heats up. Other major players like BlackRock have entered the market with their own tokenized funds, signaling a clear industry-wide shift. By partnering with the world's largest exchange, Franklin Templeton gains a massive distribution channel and reinforces the viability of using tokenized traditional assets within the native crypto ecosystem.

The program expands upon a strategic collaboration between the two firms that began in September 2025, indicating a long-term vision for deeper integration. As regulatory frameworks like the EU's MiCA provide clearer rules of engagement, such partnerships are expected to become the standard for institutional-grade digital asset offerings. This initiative serves as a powerful blueprint for how traditional financial instruments and blockchain technology can be combined to create a hybrid financial system that is more secure, efficient, and accessible for all participants globally.